ACF734 Accounting and Finance Assignment Sample

ACF734 Accounting and Finance Assignment Sample

Introduction

Apple Inc. is an American technology company of the recent decade that offers a wide range of products including mobile phones, personal computers, tablets, televisions, portable devices in online services. In the past 5 year company stock has increased by 331%. The company is known for developing products such as the Macintosh line of computers, iPad, iPhone and iPod. The computer software the company produces ranges from Life to the Safari web browser, iOS and iTunes. Apple currently employs at least 46,000 full-time and more than 2,800 employees worldwide. By September of last year, the company had employed about 50,000 full-time workers. Apple Inc. It stands out as one of the most successful companies founded in the 1970s.The organization was founded by Steve Occupations, Steve Wozniak, and Ronald Wayne as a small PC maker, with the first item handcrafted by Wozniak himself and called the Macintosh I. Wayne sold his shares for $800 a year later. At the same time, it became clear that a sponsor named Mike Markkula was very important to the company and helped Apple with its projected operating costs of $250,000 .Institutional profits have grown significantly, like the hands of a clock, in the first five years. The Macintosh developed and introduced new personal computer formats in 1977 and 1980 to address the corporate personal computer sector. In late 1980, Apple opened up to the world and its shares were listed on the stock exchange at a price of 22 USD/listing. In this report will analysis the company financial stability and performance on the basis of financial statements and balance sheet of past 4 years.

CORE Analysis

Context

as we all know that Apple is a revolutionary company in the minds of all variants of consumers.Apple differentiated its all product range at a regular time period. diversified the business and now offering software-hardware consumer electronics operating system music stores mobile phones added new products I phone I pad iPod touch superdrive apple TV etc. each apple user admired it can tell the features style design everything in perfect condition. Apple has qualified people in research and development to develop these gadgets as they are now highly technological its nature smart in its appearance,vital data storage, and fast processing.

Overview

The Macintosh was set up as the essential PC on April 1, 1976 by Steve Occupations and Steve Wozniak further, consolidating the association on January 3, 1977 in California, USA. For what reason is it called Apple? As Steve Occupations’ journals call attention to, the name was made after he got back from a Macintosh ranch and thought the name sounded “fun, vivacious, and not terrifying” (Apple Support, 2021). .The vision of the Apple Inc. is “Apple is centered around bringing the best individualized registering experience to understudy, educators, innovative specialists and customers all through the planet through its inventive hardware, programming and Web commitments.” Apple Inc’s. main goal is “Macintosh intends to be the best PC on the planet, the Macintosh, alongside X, iLife, iWork, and master programming working frameworks. Macintosh is driving a PC supported music insurgency with its iPod and iTunes online shops. Macintosh is reevaluating cell phones with its high level iPhone and application store, molding the future destiny of flexible media and registering gadgets on the iPad. “Apple likewise offers gadgets and programming things to huge venture and government clients (Apple Inc., 2015) because of a reliable mix of show highlights, helpfulness, accommodation, and information advancement conditions. Extraordinary for business (Apple Inc., 2015). Apple’s things are suitable with most outcast applications and organizations and the things devices enable the new development and secure transport of custom applications (Apple Inc., 2015). In July 2014 Apple proclaimed a relationship with IBM to offer an application called MobileFirst for iOS giving one more class of industry-unequivocal adaptable plans (Apple Inc., 2015). Apple furthermore executed AppleCare for Enterprise, which is one more assistance and support thing altered to the necessities of huge business customers (Apple Inc., 2015).

In 2007 Apple entered the cellphone market by introducing the iPhone, which was significantly valued due to its stand-out style, contact screen limit and nonattendance of real control center (Apple History, 2015). The iPhone was followed by the iPad in 2010, which was fundamentally a more prominent iPhone without the calling limits, zeroing in on people who are looking for lightweight contraptions with enormous screens that can do a huge part of the endeavors they can do on their PCs (Apple History, 2015). Later on 2010, a basic chronicled second occurred (Apple History, 2015). Mac’s most huge adversary and the long haul dominating of the PCs market, Microsoft, lost its circumstance concerning stock worth and pay when Apple protections trade worth and complete pay beat Microsoft unexpectedly (Apple History, 2015). This was far from suspicions, beholding back to the 80’s and 90’s, but on account of Apple continued with accomplishment in a couple of business areas especially the cellphone market while Microsoft was missing the mark in a couple of business handles especially in its web based web list business; it became possible (Apple History, 2015). Macintosh’s success went before, even after its thriving maker Steve Jobs’ departure in 2011 and Tim Cook having his spot, by continuing to cultivate its current things and introducing new things like the most recent Apple Watch (Apple History, 2015).

Vision

Leadership in product design and development, with a focus on excellence as a business organization The vision of Apple Inc. is to “make the best products on earth and make the world a better place than we found it to be”.

Evaluation

Its observed that apple has been concentrated to continue developing competencies not limited to technologies only they were thriving to achieve extreme form of technology.so their users don’t get disappointed . Every time their effort is to develop their product.as we are observing their products are valuable rare  and inimitable. Apple target 3 main segments for their products when they design and they urban population which have enough purchasing power of buying apple products come form these segments. first are music lover who buy ipod and I tunes second the buyers of apple tv and apple watches & the third segment of customers are very high from the age of 20 to 50 they are the users of iphone, macbooks,tablets and many more. just because of competency the users positioned these products in their mind as ultimate unique range that no other brand can go closer to this high position no matter how much costly apple products are costumers who like to use products with such standard, high technology,  don’t mind to spent money on these.

Business strategy

Apple Inc. has a plainly conveyed business method that can be found in their yearly 10-K reports. Their business system is as per the going with: The Company is based on bringing the best client experience to its clients through its creative equipment, programming, peripherals, and associations. The Company’s business procedure use its stand-apart capacity to plan and make its own working frameworks, gear, application programming, and associations to give its clients new things and game-plans with no sweat – of-use, consistent joining, and imaginative course of action. The affiliation accepts steady interest in creative work what’s more, progressing and publicizing is key to the new turn of events and arrangement of innovative things and headways. As a component of its methodology, the Company keeps on expanding its foundation for the divulgence and transport of unapproachable motorized substance and applications through the iTunes Store. As a piece of the iTunes Store, the affiliation’s App Store and iBook store award clients to find and download applications and books through either a Mac or Windows-based PC or through “iOS gadgets,” to be unequivocal iPhone, iPad and iPod contact. In January 2011, the Organization opened the Mac App Store to permit clients to effectively find, download and present applications for their Macs. The relationship in like way keeps a The Innovative Success that is Apple, Inc. 4 area the improvement of outsider programming and equipment things and modernized substance that supplement the Company’s responsibilities. The Company’s system additionally intertwines loosening up its scattering relationship to enough appear at more clients and outfit them with a staggering course of action and post-deals support information.” (Apple Inc., 2015). The mission, vision, strategy and targets portray decision making at the affiliation and give a plan to regular business stream

 

Ratios

Current ratio

Ratio 2020 2019 2018 2017
Current Ratio 1.36 1.54 1.13 1.28

Acid Test Ratio

Ratio 2020 2019 2018 2017
Acid test ratio 1.33 1.50 1.10 1.23

Cash Ratio

Ratio 2020 2019 2018 2017
Cash ratio 0.36 0.46 0.22 0.20

Debt Ratio

Ratio 2020 2019 2018 2017
Debt Ratio 1.64 1.13 0.96 0.73

Debt to equity ratio

Ratio 2020 2019 2018 2017
Debt to equity ratio 3.96 2.74 2.41 1.80

Asset Turnover Ratio

Ratio 2020 2019 2018 2017
Asset Turnover 0.83 0.74 0.72 0.66

Inventory Turnover Ratio

Ratio 2020 2019 2018 2017
Inventory Turnover Ratio 0.99 1.02 0.90 1.39

Profit Margin Ratio

Ratio 2020 2019 2018 2017
Profit Margin 0.38 0.38 0.38 0.38

Operating Margin

Ratio 2020 2019 2018 2017
Operating Margin 0.24 0.25 0.27 0.27

Return on Equity

Ratio 2020 2019 2018 2017
Return on Equity 0.88 0.61 0.56 0.36

Evaluation

On March 25, 2019, Tim Cook taken abackthe groupcertainlyon the profoundly anticipatedevent at Steve Jobs theatre with the aid of using reporting the listingof recentthoughts incubated with the aid of using the organization. He commenced the discourse with the aid of using characterizing the phrasemanagement and declared the dispatch of video net based, information memberships and moreover a MasterCard (Booton, 2016). The innovation behemoth, Apple settled on ancrucialdesireto go into the video actual time enterprise. Apple is called the pioneer and maker for smooth to apprehend and entrancing slicingfactconsumerdigital items. The desire to advent to the video actual time enterprise is a mild deviation from its fashionableenterprise, which in a mannerobtainedemblem acknowledgment for the organization. In this blog, Televisory investigated the motives that drove Apple to take this desire (Ethical Consumer, 2016).

IPhonethat’s an unmistakable photograph of Apple represented 63% of absolutely theearnings in 2018. The differentdigital products, for example, iPad, Mac and the Apple Watch represented a relativelyplenty lesser quantity of the earnings for the employer. The 2ndmaximumincreased supporter of the earnings (2018) turned into its administrations portion, which integrated the wallet; Apple Pay, iTunes and Cloud. Over the maximumlatest4 years, the administrations segment has visible the maximumincreasedimprovement at a CAGR of 19.8%. The iPhones earningsevolved at CAGR of 13.1%, but the iPad earnings recorded a lower of 11.2% and the Mac earningsnoticedan incredibly languid improvement of 1.4% in a comparable period. The marketplace has now no longer reacted emphatically to the iPad and the Mac of late. The employer has been diminishing the promoting fee of its iPad withinside thepath of the maximumlatest4 years, but the commercial enterprisequantitynoticed a decay of 10.5%. The commercial enterprisequantity of Mac likewise declined butvia way of means of a tiny range in a comparable time-frame. iPhone has continually been the maximum encouraging end result of the employer, which noticedangrowth in offersquantity at CAGR of 6.5% in any event, while its everydaypromotingfeeaccelerated at a CAGR of 6.2% over the maximumlatest5 years. Be that because it may, in any event, for the iPhone, the YoY earningsimprovementturnedintocompletely unsteady. It turned into 52% in 2015, butontheidenticalmuch less

According to industry analysis, Apple is facing fierce competition or fierce competition. This means that Apple’s competitors are influencing each other. Apple is in direct competition with other hardware and software providers such as Google, Microsoft and Samsung. Despite Apple, these companies spend a lot of money on research, development, and marketing to keep information up-to-date and exchangeable. One of the most important considerations that makes a company very aggressive is the minimum cost of the exchange organization. For example, customers don’t have to invest heavily to switch from Apple’s iPad to Google Chromebook or other tablets in . The seriousness of the business is important to Apple, and achieved that by continuously adding new products and new products to strengthen its stake in the industry. Apple is also fighting cost-based competition by avoiding low-level advertising and ensuring better positioning. Apple’s products aren’t cheap at all, so we had the opportunity to position ourselves among the top buyers with amazing quality, excellent customer support, and excellent products.

SWOT Analysis(Arthur, 2011) (EC, 2016)

STRENGTHS

 

• 13.9 % market share

• Solid brand value

• High R & D

• Great Marketing

• High profit margins

• Software/OS

• Consumer Loyalty

• Plan Consistency

 

WEAKNESSES

 

• Short Product Life

• Issues in battery limitation

• High selling prices

• Limited distribution network

 

OPPORTUNITIES

 

• Distribution network expansion

• Rising demand for tablets and smartphones

• Creation of new product lines

• Formation of strategic partnerships

• Accessory potential

 

THREATS

 

• Loss of innovations

• Rising in cost of labor

• Impersonation

• Aggressive competition

 

 Appendices

Particulars 2020($) 2019($) 2018($) 2017($)
Liquidity Ratios        
Current Ratio 1.36 1.54 1.13 1.28
         
Current Assets 143713 162819 131339 128645
Current Liabilities 105392 105718 115929 100814
         
Acid test ratio 1.33 1.50 1.10 1.23
         
Current Assets – Inventories 139652 158713 127383 123790
Current Liabilities 105392 105718 115929 100814
         
Cash ratio 0.36 0.46 0.22 0.20
         
Cash & Cash equivalents 38016 48844 25913 20289
Current Liabilities 105392 105718 115929 100814
         
         
Leverage Ratios        
Debt Ratio 1.64 1.13 0.96 0.73
         
Debt 107440 102067 102519 97207
Equity 65339 90488 107147 134047
         
Debt to equity ratio 3.96 2.74 2.41 1.80
         
Total Liabilities 258549 248028 258578 241272
Shareholder equity 65339 90488 107147 134047
         
Efficiency Ratios        
Asset Turnover 0.83 0.74 0.72 0.66
         
Net sales value 274515 260174 265595 229234
Average/Total Assets 331202 352121 370522 348503
         
Inventory Turnover Ratio 0.99 1.02 0.90 1.39
         
Cost of goods sold 4061 4106 3956 4855
Average Inventory 4084 4031 4406 3494
         
         
                                                           Profitability Ratios        
Profit Margin 0.38 0.38 0.38 0.38
         
Profit 104956 98392 101839 88186
Net sales 274515 260174 265595 229234
 
Operating Margin 0.24 0.25 0.27 0.27
 
Operating Income 66288 63930 70898 61344
Revenue 274515 260174 265595 229234
 
Return on Equity 0.88 0.61 0.56 0.36
 
Net profit 57411.00 55256 59531 48351
Equity 65339 90488 107147 134047

 

Liquidity Ratio:It depicts a company’s ability to payout all the obligations of debt.

Efficiency Ratio:It justifies the peak level of company’s performance.

Profitability Ratio: It refers from which company yields/earns profit.

Leverage Ratio:It is utilized to gauge organization’s working costs to find out about what changes in yield will mean for working pay.

 References

Apple Support. 2021. Apple Platform Security. [online] Available at: <https://support.apple.com/guide/security/welcome/web> [Accessed 13 November 2021].

Booton, J. (2016, February 2). Alphabet officially surpasses Apple as world’s most valuable company. Retrieved February 3, 2016, fromhttp://www.marketwatch.com/story/alphabet-officially-surpasses-apple-as-worlds- most-valuable-company-2016-02-02

Ethical Consumer. 2016. Apple Inc. Workers’ Rights. http://www.ethicalconsumer.org/companystories.aspx?CompanyId=12944&CategoryId= 421

Arthur, C. (2011, April 28). Microsoft falls behind Apple for first time in 20 years. Retrieved February 12, 2016, fromhttp://www.theguardian.com/technology/2011/apr/28/microsoft-falls-behind-apple

Televisory. 2021. Evaluating the performance of Apple products and its decision to enter the video streaming business – Blogs. [online] Available at: <https://www.televisory.com/blogs/-/blogs/evaluating-the-performance-of-apple-products-and-its-decision-to-enter-the-video-streaming-business> [Accessed 13 November 2021].

Apple History (2015, July 15) Retrieved November 14, 2021, from http://apple-history.com/

Annual report. 2020. [online] Available at: <https://s2.q4cdn.com/470004039/files/doc_financials/2020/ar/_10-K-2020-(As-Filed).pdf> [Accessed 13 November 2021].

Annual report. 2019. [online] Available at: <https://https://s2.q4cdn.com/470004039/files/doc_financials/2019/ar/_10-K-2019-(As-Filed).pdf> [Accessed 13 November 2021].

Annual report. 2018. [online] Available at: <https://https://s2.q4cdn.com/470004039/files/doc_financials/2018/ar/_10-K-2018-(As-Filed).pdf> [Accessed 13 November 2021].

Annual report. 2017. [online] Available at: <https://https://s2.q4cdn.com/470004039/files/doc_financials/2017/ar/_10-K-2017-(As-Filed).pdf> [Accessed 13 November 2021].

Self-Reflective Discussion

This Self-Reflective Discussion is mostly based on the remarks added by the instructor. In this discussion, I have tried to cover all the parts and comments of instructor that were provided in the earlier assignment and I have made the all required changes and modifications in those parts specifically.

In the earlier assignment, External Environment was awarded 40% weightage, the reason was that the discussion was muddled, In the new assignment, I have tried to keep the explanations up to the topic and I have avoided unnecessary detailing and discussions.

SWOT Analysis

In the assignment earlier, the swot analysis was not presented in the right format; I have added the swot analysis in this new assignment in evaluation section. As we know that SWOT analysis helps companies recognize their current status and understand and measure their overall performance. This allows companies to analyze their strengths and drive market penetration to achieve their business goals.So this was a must included part in the project, earlier assignment also the part was added but it was not in the right format. I performed a SWOT analysis to better understand how to compete in the smoothie market and what we can do better. Through this analysis, the company’s strengths are found to be excellent raw material procurement, personal customer service, and strong relationships with suppliers. Looking at the business, we identified several weaknesses, including low product diversification, high turnover, and old equipment’s

 Overview

In the previous assignment, in the overview part, there were no trends study inserted, but I have added trends analysis in this new assignment. Asa trend survey, i collect data from a specific population characterized by a specific variable. B. Level of education. For more information, see Research: Methods, Problems, and Future. Trend surveys collect data from a particular population characterized by a particular variable. Like Level of education. Earlier we have missed this part but this time the trend analysis is included in the assignments company overview is an essential part of a business plan. It’s an overview of the most important points about your company history, management team, location, mission statement and legal structure.

Ratio Analysis

In the earlier assignment as per the instructor’s comment, the Ratio Analysis was not added properly, in this new assignment I have added the ratio analysis and calculation were also made in the proper places.RatioAnalysis is a useful management tool that improves your understanding of financial results and trends over time and provides key indicators of performance. Administrators use relationship analysis to identify strengths and weaknesses that can lead to strategies and initiatives. So, in this assignment, I have added the Ratio analysis in the proper format with the required calculations

Further, in this appendix is also added and in this appendices section all ratio calculations have been showed properly of last four financial years which depicts the company financial capability and stability. In addition, main ratio defines properly in this section as per the requirement.

Evaluation

In the earlier assignment that was submitted, I have not added the evaluation part that is the most important part for any assignment, In the assessment essay, you need to analyze the pros and cons of your personal experience. After analyzing both, it is necessary to give a judgment or evaluation on the subject. It is important to investigate the subject and provide views and evidence to support your judgment. Writing a review helps students become more open about this often-unconscious day-to-day work and prepare to explore ideas, facts, discussions, etc. more critically. … the reader may be asking for the opinions of others for some reason and will start to review the writing. Earlier assignment, this evaluation part was not added but this is added in the new assignment to make it more complete, and to help assess the work. Business valuations that review financial positions use financial statements such as balance sheets, accounts receivable and payable, income statements, annual budgets, and cash flow statements.

Management Techniques

Management techniques are “recognized methods for detailed and systematic analysis or resolution of recognized management problems.” An administrative problem is a situation in which an administrator must make an administrative decision. Some management methods rely heavily on mathematics, while others are based on scientific methods, but neither mathematics nor science is fundamental. However, all management techniques rely heavily on systematic, systematic, logical, and rational approaches. That is, carefully, in detail, and analytically decompose the problem or put together a solution. Another technique, linear programming, is a great example of a technique that can help solve a problem. In fact, certain types of problems are far superior to any manager and can only be resolved and accepted. You can clearly explain each management method. Therefore, we know that it is very important to use these techniques in the assignment, but we did not use them in the previous assignments. We have incorporated these techniques into the new assignment. Management techniques help business leaders build stronger, more effective and productive teams. Depending on the situation, these techniques can be combined and adapted.

Presentation and Structuring

Good presentation skills help educate and persuade your audience. Good presentation skills can also help show leadership skills. Like other forms of academic writing, presentations can be divided into three parts. An introduction that explains the purpose and structure of the talk. A body that covers the main points. And a conclusion that summarizes and emphasizes the importance of your story. Imagine if you could create a compelling presentation for your boss or client. In addition, ideas need to flow or link so that the reader is drawn by some explanation or discussion rather than stopping and starting at the new point.

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